Elements of Socialism: A Text-Book

Capitalist and manager: The capitalist as such has nothing
to do with the management of the industry in which he
holds stock. As a capitalist owner of a textile mill he need
not know the difference between gingham and worsted.
He may be a child or an idiot. If he does useful work in the
management of the industry, as capitalists of a generation
ago often did, he is to that extent a laborer and is entitled
to the rewards of labor. As a matter of fact, he usually
gets these rewards over and above his income as a capitalist.

The shrewd business man who so directs an undertaking
that it yields an increasing revenue without raising prices
or lowering wages is undoubtedly performing a real service
for society, and should receive a salary proportionate to
that service. But when the gain comes through monopoly,
special privilege, injury to the consumer or injury to the
producer, society receives no benefit for which it should be
called upon to make any payment. The business man who
works for himself and against the interests of society deserves
no consideration and no reward.

Socialists do not wish to deny to the real captains of
industry a reward equivalent to the social value of their
share in production, any more than they wish to deny to
the least efficient laborer the equivalent of the social value
of his share in production. Socialists do charge, however,
that even the salaries of those engaged in the management
of industry as it is at present conducted are not proportioned
to the share of the recipients in production. "To him that
hath shall be given" seems to be the rule to-day, as of old.
Men who have wealth or influence with the wealthy can
obtain positions with salaries far in excess of the value of the
services rendered. Capitalism also richly rewards services
which are socially undesirable and unnecessary. Brokers,

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